Kiwi up on commodities strength

JAZIAL CROSSLEY
Last updated 18:02 02/07/2012

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The New Zealand dollar was up against the greenback after hitting a high of US80.40c in reaction to the news that European leaders would create a supervisory role to oversea banks within the euro zone.

At the European Summit, they agreed to support troubled banks of member nations.

The kiwi recently traded at US80.14c, up from US80.06c in the morning. It was at 72.30 on the Trade Weighted Index against major trading partners' currencies, up from 72.22 in the morning.

HiFX currency trader Alex Hill said the kiwi had another significant push up after its lift on Friday.

"We've really just seen things settle down since then, but markets took it as great news the European leaders would form unity. The kiwi went up a cent ahnd a half, also with the moves up in oil and other commodities," Hill said.

"It will be interesting to see what the details of the European plan are and how easily they will be able to execute it. Quite often with these announcements we're not going to see things happen overnight."

On the crosses, the kiwi recently traded at 78.32 Australian cents, up from A78.15c in the morning. It fell to 63.82 Japanese yen from 63.85 yen earlier. It was at 63.47 euro cents, up from 63.19 euro cents in the morning. It rose to 51.16 pence from 50.97 pence previously.

Hill expected the kiwi to trade between US79.60c and US80.70c overnight with a bias towards the top side.

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- BusinessDay.co.nz

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